Analysing the Efficiency of Air Freight by Airport Using DEA-Malmquist Approach

Key Points

• The study aims to evaluate the efficiency of air freight across various airports and understand the factors behind efficiency disparities and their effects on productivity.
• Used Data Envelopment Analysis (DEA) to assess cargo transport efficiency of 15 domestic airports.
• Decomposed the Malmquist index to analyze technical change and efficiency change affecting productivity over time.
• Identified causes of inefficiency among the airports, focusing on operational and scale inefficiencies.
• Incheon Airport was identified as an efficient Decision-Making Unit (DMU).
• Yangyang Airport was primarily affected by scale inefficiency, while others were mostly hindered by operational inefficiencies.
• All domestic airports demonstrated increasing returns to scale, suggesting that expanding operations may be more beneficial than reducing flights.

Abstract